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DECREE No

DECREE No. 32/1999/ND-CP OF MAY 5, 1999 ON SALE PROMOTION, COMMERCIAL ADVERTISEMENT AND TRADE FAIRS AND EXHIBITIONS

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the May 10, 1997 Commercial Law;

At the proposal of the Minister of Trade,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation

This Decree stipulates in detail the implementation of the Commercial Law�s provisions on sale promotion, commercial advertisement and trade fairs and exhibitions.

Article 2.- Provisions on the sale promotion or the provision of commercial advertisement services or trade fair and exhibition services by traders

1. All traders may apply the sale promotion forms as prescribed in Article 181 of the Commercial Law, this Decree and Articles 183 and 185 of the Commercial Law.

2. Only traders that meet all the conditions prescribed in Articles 21 and 26 of this Decree and have been granted business registration certificates for the provision of commercial advertisement services or trade fair and exhibition services by competent State agencies shall be entitled to provide such services.

Chapter II

SALE PROMOTION

Section 1. GOODS AND/OR SERVICES USED FOR SALE PROMOTION; PRICES OF GOODS AND/OR COMMERCIAL SERVICES DURING THE SALE PROMOTION PERIOD

Article 3.- Goods and/or services used for sale promotion

1. Goods and/or services used for sale promotion are those given by the traders as gifts or rewards or provided to their customers during the sale promotion period.

2. Goods and/or services used for sale promotion must be those not banned from circulation or provision as prescribed by law.

3. The value of goods and/or services used for sale promotion must not exceed 30% of the pre-sale promotion unit price of such goods or service.

Article 4.- The prices of goods and/or commercial services during the sale promotion period

The price of each goods item or commercial service at any time during the sale promotion period must not be lower than 70% of the pre-sale promotion price of such goods item or commercial service.

Section 2. SALE PROMOTION FORMS

Article 5.- Offering sample goods to customers for trial use free of charge

Sample goods given to customers for trial use free of charge must be goods currently sold or to be sold on the market.

Article 6.- Giving goods as gifts or providing services to customers free of charge

Traders may provide customers with goods and/or service which they are dealing in or other goods or services as gifts.

Article 7.- Selling goods or providing services during the sale promotion period at prices lower than their previous normal prices

When applying this sale promotion form, traders shall have to post up the sale promotion duration; the normal sale prices of goods and commercial services before the sale promotion; and those during the sale promotion period.

Article 8.- Selling goods or providing services together with coupons or other forms of winning prizes according to rules and prizes already announced

When applying this sale promotion form, traders shall have to:

1. Clearly and concretely announce the coupons, prizes and method(s) of determining prize winners, which shall be printed on such coupons or posted up at the places where the goods are sold or services are provided.

2. Inform the Trade Service of the province or city where the traders organize the sale promotion of the prize winning results according to the already announced rules within 30 days after the end of the sale promotion; and at the same time, announce the prize winning results on at least a mass medium.

Article 9.- Selling goods or providing services together with contest coupons for customers so as to select prize winners according to the announced rules and to offer the prizes thereto

When applying this sale promotion form, traders shall have to:

1. Clearly and concretely announce the prizes, prize drawing method and method for determining prize winners on the contest coupons and announce them on at least one mass medium. The content of contest coupons must include matters related to goods, services and other matters, which, however, must not be contrary to the historical, cultural and moral traditions, fine customs and practices of Vietnam;

2. Inform the Trade Service of the province or city where the traders organize the sale promotion of the prize winning results according to the already announced rules within 30 days after the end of the sale promotion; and at the same time, announce the prize winning results on at least one mass medium.

Article 10.- Selling goods or providing services together with lottery tickets for drawing prizes according to the rules and prizes already announced

1. The sale of goods or provision of services together with lottery tickets for drawing prizes must comply with the following regulations:

a) It must be approved by the agency in charge of State management over trade specified in Clause 2 of this Article;

b) The form of lottery tickets must be different from that of national construction lottery tickets issued exclusively by the State; all necessary information on sale promotion program, the number of lottery tickets to be issued, the number of prizes, the value of each prize, the place(s) for prizes presentation and the prize drawing time and place must be fully printed on such lottery tickets; such tickets shall only be issued together with goods sold or services provided and shall have to be destroyed after each sale promotion program;

c) It is prohibited to use the result of the State�s national construction lottery tickets as the result of sale promotion prizes.

d) The prize drawing shall be carried out only after the destruction of all the lottery tickets which have not been distributed together with the sold goods, and must be witnessed by the agency in charge of State management over trade that has approved the sale promotion activities, and customers� representatives;

e) The prize winning results shall be recorded in writing and publicly announced;

f) The results of the said sale promotion program shall be reported to the agency that has approved such sale promotion activities within 30 days after the end of the sale promotion.

2. The procedures for organizing sale promotion in the form of selling goods or providing commercial services together with lottery tickets:

a) For a sale promotion program organized within a province or centrally-run city, the organizing traders shall have to send a dossier to the provincial/municipal Trade Service at least 15 days before such sale promotion is organized;

b) For a sale promotion program organized at the same time in two or more provinces or centrally-run cities, the organizing traders shall have to send a dossier to the Ministry of Trade at least 15 days before such sale promotion is organized;

c) A dossier applying for permit to organize a sale promotion shall comprise:

- An application for the permit to organize the sale promotion in form of lottery tickets; which include such contents as: goods and/or services subject to sale promotion; goods and/or services used for sale promotion; the sale promotion duration; the sale promotion location; the composition of the prize drawing board; prizes and place(s) for presenting prizes.

- The prize drawing rules.

d) The agencies in charge of State management over trade specified in Points a and b, Clause 2 of this Article shall consider and approve in writing the traders� request to organize sale promotion in the form of lottery tickets within 7 working days after they receive complete and valid dossiers. In case of disapproval, they shall have to reply in writing also within the said time limit and clearly state the reasons therefor.

Chapter III

COMMERCIAL ADVERTISEMENTS AND PROVISION OF COMMERCIAL ADVERTISEMENT SERVICES

Section 1. THE RIGHT TO COMMERCIAL ADVERTISEMENT

Article 11.- Commercial advertisements by Vietnamese traders

Individuals, legal persons, cooperative groups and/or family households being traders under provisions of the Commercial Law may directly advertise their production and/or business activities as well as the goods they have produced or traded in and/or the commercial services they have provided, or hire advertising organizations to perform the commercial advertisement for them.

Article 12.- Commercial advertisements by foreign-invested enterprises

Foreign-invested enterprises may directly advertise their production and/or business activities as well as the goods they have turned out or traded in and/or the commercial services they have provided, or hire advertising organizations to perform such commercial advertisement for them in line with their investment licenses.

Article 13.- Commercial advertisements by foreign traders in Vietnam

1. Foreign traders that have representative offices or branches licensed to operate in Vietnam may directly advertise their production and/or business activities as well as their goods and/or services in Vietnam, or hire Vietnamese advertising organizations to perform such advertisements according to provisions of this Decree.

2. Foreign traders that have been licensed to operate in Vietnam but have not had representative offices or branches yet, and wish to have their production and/or business activities as well as their goods and/or services advertised in Vietnam shall have to hire Vietnamese advertising organizations to perform such advertisements according to the provisions of this Decree.

Section 2. GOODS AND SERVICES TO BE ADVERTISED; COMMERCIAL ADVERTISEMENT PRODUCTS

Article 14.- Goods and commercial services allowed for advertisement.

Traders mentioned in Articles 11, 12 and 13 of this Decree may advertise goods which are not banned from circulation and/or commercial services which are not banned from provision, under the provisions of Vietnamese law by the time of advertisement.

Article 15.- Goods and commercial services banned from advertisement

The following goods and services are banned from advertisement:

1. Goods banned from circulation and commercial services banned from provision under the provisions of law.

2. Products and goods which have not been permitted for circulation, and commercial services which have not been permitted for provision under the provisions of law by the time of advertisement.

Article 16.- Advertisement for goods and commercial services subject to the business restrictions

The advertisement for goods and commercial services subject to the business restrictions under the provisions of law must be approved by the Ministry of Trade.

Article 17.- Advertisement for goods not yet imported and/or commercial services not yet provided in Vietnam

Goods not yet imported or commercial services not yet provided in Vietnam that need to be advertised in Vietnam, must be those not banned from advertisement specified in Article 15 of this Decree.

Article 18.- Requirements of truthfulness and accuracy in advertisement

The specifications, quality, prices, utility, patterns, types, packing, service mode, warranty period of the advertised goods and commercial services must be identical to those of goods and commercial services sold or provided on the market.

Article 19.- Advertisements where trademarks, logos and/or names of production, business or commercial service establishments are used

Trademarks, logos and/or names of production, business or commercial service establishments used in advertisements must be under the ownership of the persons who order such advertisements, or otherwise consents of the lawful owners of such trademarks, logos and/or names must be obtained. Traders who wish to hire advertisements shall have to be responsible for the use of trademarks, logos and/or names of production, business or commercial service establishments.

Article 20.- Commercial advertisement products, locations and means

1. The use of forms, visual images, actions, sounds, voices, inscriptions, symbols, colors and light in advertisements for goods and commercial services must comply with provisions of Vietnamese law.

2. The advertisement locations must comply with the urban or local construction planning and guidance of the concerned agency(ies); and cause no adverse impacts on the scenery, environment, traffic order and safety, and social security.

3. The use of commercial advertisement means must comply with the provisions of Articles 190 and 193 of the Commercial Law.

The Ministry of Culture and Information shall coordinate with the concerned agencies in providing detailed guidance for the implementation of the provisions of this Article.

Section 3. PROVISION OF COMMERCIAL ADVERTISEMENT SERVICES

Article 21.- The requirements that must be met by the traders providing commercial advertisement services include:

1. Being enterprises established under the provisions of law;

2. Being enterprises operating independently and specializing in commercial advertisement services;

3. Not being engaged in goods sale and purchase, except for the sale and purchase of machinery, equipment and supplies in service of their business lines.

Article 22.- Commercial advertisement service contracts

The commercial advertisement service contracts, as well as the rights and obligations of commercial advertisement service hirers and commercial advertisement service providers shall comply with Articles 195, 196 and 197 of the Commercial Law.

Section 4. STATE MANAGEMENT OVER COMMERCIAL ADVERTISEMENT ACTIVITIES AND PROVISION OF COMMERCIAL ADVERTISEMENT SERVICES

Article 23.- The responsibilities of the Ministry of Trade

The Ministry of Trade is the agency exercising the State management over commercial advertisement activities and shall have the responsibilities to:

1. Elaborate and submit to the Government for promulgation or promulgate according to its own competence legal documents on commercial advertisement.

2. Coordinate with the Ministry of Culture and Information and the concerned agencies in guiding the implementation of the regulations on commercial advertisement.

3. Inspect and examine the observance of law provisions on commercial advertisement, and handle violations in commercial advertisement according to its competence.

Article 24.- The responsibilities of the Ministry of Culture and Information

The Ministry of Culture and Information shall have to assume the prime responsibility and coordinate with the concerned agencies in elaborating and submitting to the Government for promulgation or promulgate according to its competence legal documents on commercial advertisement products, commercial advertisement means and the use of such means as prescribed in Article 20 of this Decree, in order to ensure a healthy advertising environment and the compliance with provisions of Vietnamese law.

Article 25.- The responsibilities of the People�s Committees of the provinces and centrally-run cities

The People�s Committees of the provinces and centrally-run cities shall have to direct the provincial/municipal Trade Services in:

1. Inspecting and examining the observance of the law provisions on commercial advertisement, and handling violations in commercial advertisement in their respective localities.

2. Reporting annually on the result of performance of commercial advertisement activities in their respective localities to the Ministry of Trade

Chapter IV

TRADE FAIRS AND EXHIBITIONS

Section 1. PROVISION OF TRADE FAIR AND EXHIBITION SERVICES

Article 26.- The requirements that must be met by the traders providing trade fair and exhibition services include:

1. Being enterprises established under the provisions of law;

2. Being enterprises operating independently and specializing in trade fair and exhibition services;

3. Not being engaged in goods sale and purchase, except for the sale and purchase of machinery, equipment and supplies in service of their business lines.

Section 2. TRADE FAIR AND EXHIBITION SERVICE CONTRACTS

Article 27.- Trade fair and exhibition service contracts

Trade fair and exhibition service contracts must be made in writing, each must include the following main contents:

1. Names and addresses of the contracting parties;

2. Contents of the service(s) to be provided;

3. Place and time for performing service(s);

4. Service charge and other expenses.

Article 28.- The rights and obligations of the parties to a trade fair and exhibition service contract

1. The rights and obligations of the trade fair and exhibition service provider(s) are prescribed in Article 218 of the Commercial Law.

2. The rights and obligations of the trade fair and exhibition service hirer(s) are prescribed as follows:

a) To fully supply goods, documents on goods or means to the trade fair and exhibition service provider(s) according to the contract;

b) To supply information on goods and other necessary means as agreed upon in the contract;

c) To inspect the contract performance;

d) To pay service charge and other contractual expenses.

Section 3. GOODS FOR PARTICIPATION IN TRADE FAIRS AND EXHIBITIONS

Article 29.- Goods imported for participation in trade fairs and exhibitions in the country

1. Goods imported for participation in trade fairs and exhibitions must not be on Vietnam�s list of goods banned from import; goods being pharmaceuticals must be on the list already registered with the Ministry of Health.

2. The quality of products imported for participation in trade fairs and exhibitions shall not exceed 5 units for each type of product, if it exceeds 5 units for a type of product, the Ministry of Trade�s approval is required.

3. Goods imported for participation in trade fairs and exhibitions shall have to be re-exported within 30 days after the end of such trade fairs and exhibitions. If the goods cannot be re-exported within the said time limit, the concerned traders shall have to request in writing the Ministry of Trade to extend such time limit. Each extension shall not exceed 30 days after the expiry date, and it shall not be extended for no more than three times.

Article 30.- Home-made goods participating in trade fairs and exhibitions abroad

Vietnamese traders� goods participating in overseas trade fairs and exhibitions must not be on Vietnam�s list of goods banned from export, except where permitted by the Prime Minister.

Article 31.- Sale of goods participating in trade fairs and exhibitions during and after such trade fairs and exhibitions

1. Goods temporarily imported into Vietnam for participation in trade fairs and exhibitions, which have not been re-exported but sold or donated in Vietnam, must comply with the following regulations:

a) They must be so permitted in writing by the Ministry of Trade

b) They shall be liable to tax(es) and other financial obligations as prescribed by Vietnamese law.

2. Goods temporarily exported for participation in overseas trade fairs and exhibitions shall be allowed to be sold overseas and liable to tax(es) as prescribed by Vietnamese law.

Section 4. STATE MANAGEMENT OVER TRADE FAIR AND EXHIBITION ACTIVITIES

Article 32.- The responsibilities of the Ministry of Trade

1. To approve the plans for organizing trade fairs and exhibitions abroad by Vietnamese traders providing trade fair and exhibition services.

2. To inspect and examine the observance of law provisions on trade fairs and exhibitions, and handle violations in trade fairs and exhibitions according to its competence throughout the country.

Article 33.- The responsibilities of the People�s Committees of the provinces and centrally-run cities

The People�s Committees of the provinces and centrally-run cities shall have to direct the provincial/municipal Trade Services in:

1. Approving the plans for organizing trade fairs and exhibitions by traders providing trade fair and exhibition services in their respective provinces and cities;

2. Inspecting and examining the observance of the law provisions on trade fairs and exhibitions, and handling violations of legislation on trade fairs and exhibitions in their respective localities;

3. Reporting the annual plans for and results of performance of trade fair and exhibition activities to the Ministry of Trade.

Chapter V

HANDLING OF VIOLATIONS

Article 34.- Handling of violations committed by traders

Traders who violate provisions of this Decree shall, depending on the seriousness of their violations, be administratively handled or examined for penal liability as prescribed by law.

Article 35.- Handling of violations committed by State officials and employees

State officials and employees who commit acts of abusing their positions and powers to act against provisions of this Decree shall, depending on the seriousness of their violations, be administratively handled or examined for penal liability as prescribed by law.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 36.- Implementation effect

1. This Decree takes effect 30 days after its signing.

To cancel the granting of business licenses and practice licenses to traders providing advertisement services, trade fair and exhibition services. Other previous stipulations which are contrary to the provisions of this Decree are now annulled.

2. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People�s Committees of the provinces and centrally-run cities shall have to implement this Decree.

On behalf of the Government

Prime Minister

PHAN VAN KHAI